The latest Family Business Pulse shows renewed optimism across the family business community, with growing confidence in the economy and plans to create jobs.
Almost two-thirds (63%) of family businesses now expect the UK economy to grow over the next 12 months, up from 48% three months ago. Confidence in businesses’ own prospects has also risen from 84% to 87%.
This renewed optimism – a possible “Burnham Bounce” following the recent change in political leadership – has lifted the overall Family Business Pulse score from 60 to 63 out of 100.
There are encouraging signs for employment too. More than half of family businesses (55%) expect to increase their workforce over the coming year, up from 41% in the previous quarter.
However, most are planning only modest expansions. Businesses continue to face barriers including rising employment costs, high-wage expectations, skills shortages and uncertainty about future demand.
Investment is still being held back
Despite stronger confidence, the impact of changes to Business Property Relief (BPR) and Agricultural Property Relief (APR) continues to grow.
More than half of family businesses (58%) now report being negatively affected by the BPR changes, rising to 65% among medium-sized firms. Almost a quarter (24%) have paused or cancelled investment projects over the past year, up from 15% in the previous quarter.
For family businesses, uncertainty over succession can directly affect decisions about recruitment, premises, and long-term investment.
Looking ahead, inheritance tax reform and business rates reform were jointly identified as the policy changes most likely to support growth, followed closely by a reduction in Employer National Insurance Contributions.
The findings provide a clear message ahead of the Autumn Budget: family businesses are ready to invest and create jobs, but they need a stable and supportive policy environment.
Restoring full BPR and APR would help convert renewed confidence into investment, employment and sustainable growth across the UK.
Explore the findings and read the full Family Business Pulse report.